Portugal – Angola Convention

The Convention aims to support Portuguese exports of goods and services to Angola through the granting of guarantees from the Portuguese State. This mechanism ensures the coverage of credit risks and facilitates the financing of operations between Portuguese companies and the Angolan State, strengthening bilateral economic relations.

Refund Period

10 years

Eligible Amount

85% of the Commercial Contract

State Guarantee

95% of the Eligible Amount

Eligible Entities

Companies exporting goods and services to Angola

Portugal – Angola Convention

The Convention aims to support Portuguese exports of goods and services to Angola through the granting of guarantees from the Portuguese State. This mechanism ensures the coverage of credit risks and facilitates the financing of operations between Portuguese companies and the Angolan State, strengthening bilateral economic relations.

Refund Period

10 years

Eligible Amount

85% of the Commercial Contract

State Guarantee

95% of the Eligible Amount

Eligible Entities

Companies exporting goods and services to Angola

Objectives and characteristics

  • The Portuguese State, through the Directorate-General of Treasury and Finance, has given Banco Português de Fomento (BPF) a specific mandate to act as the Export Credit Agency within the framework of the Portugal–Angola Convention.
  • Under this Convention, the Portuguese Republic undertakes to provide risk coverage for credit related to the export of Portuguese equipment goods and services to the Republic of Angola. In turn, Angola, through its Ministry of Finance, undertakes to ensure proper payment and the transfer of amounts relating to exports carried out under the Convention.

  • Companies or entities under Portuguese law, exporters of goods and services of Portuguese origin, destined for the Republic of Angola.
  • Eligible Goods and Services
    • All goods and services with Portuguese value-added and not excluded by the OECD regarding official support for export credits..
  • Guarantee
    • The coverage takes the form of a Portuguese State Guarantee, typically intended to secure financing granted by Credit Institutions to the Ministry of Finance of the Republic of Angola, which finances the export of goods and services of Portuguese origin.

  • Eligible Amount
    • 85% of the Commercial Contract, with the possibility of financing the entire guarantee fee plus interest.
  • Conditions of the Portuguese State Guarantee
    • Guarantee:
      • 95% of the eligible amount
    • Activation of the Guarantee:
      • 90 days
    • Payment deadline:
      • 30 days
  • Initial Payment
    • A minimum upfront payment of 15% of the export contract value, although another percentage may be negotiated on a case-by-case basis, in line with OECD export credit rules at the time.
  • Contract Currency
    • Both financing contracts and guarantees issued under the Portugal–Angola Convention are denominated in euros.

  • Medium and Long-Term operations – over 2 years.
  • Repayment Term
    • Must not exceed 10 years,
      • unless OECD rules allow for longer terms or if the specific nature of the operation justifies it, under Sectoral Agreements, to be negotiated case by case, with compliance to OECD consultation procedures binding on the Portuguese Republic.
  • Repayment Conditions
    • Equal, semi-annual, consecutive capital installments.
  • Utilization Period
    • According to project delivery/execution time, ideally not exceeding 24 months.
  • Process Flow
    • The Republic of Angola, through the Ministry of Finance – Public Debt Management Unit (UGD), submits to the Portuguese Republic, via the Ministry of Finance (DGTF), requests for prior allocation of operations under the Convention.
    • Once allocated, the process continues with BPF, which coordinates with the exporter and the financing institution to prepare the formal request for coverage under the Convention.
    • The analysis of operations under the Convention is conducted on a case-by-case basis, and the guaranteed amount may include principal (including the guarantee fee) and interest.
    • Approval of coverage for operations is the responsibility of the Portuguese Ministry of Finance, based on a proposal from BPF.
  • Legislation
    • Operations must comply with the OECD Arrangement on Officially Supported Export Credits, the Sectoral Agreements attached thereto, and other applicable OECD recommendations regarding:
      • a) amount
      • b) interest rates
      • c) value and frequency of repayments
      • d) recommendations on sustainable development, anti-corruption, and environmental and social concerns.

Objectives and characteristics

The Portuguese State, through the Directorate-General of Treasury and Finance, has given Banco Português de Fomento (BPF) a specific mandate to act as the Export Credit Agency within the framework of the Portugal–Angola Convention.
Under this Convention, the Portuguese Republic undertakes to provide risk coverage for credit related to the export of Portuguese equipment goods and services to the Republic of Angola. In turn, Angola, through its Ministry of Finance, undertakes to ensure proper payment and the transfer of amounts relating to exports carried out under the Convention.

Companies or entities under Portuguese law, exporters of goods and services of Portuguese origin, destined for the Republic of Angola.
Eligible Goods and Services
All goods and services with Portuguese value-added and not excluded by the OECD regarding official support for export credits..
Guarantee
The coverage takes the form of a Portuguese State Guarantee, typically intended to secure financing granted by Credit Institutions to the Ministry of Finance of the Republic of Angola, which finances the export of goods and services of Portuguese origin.

Eligible Amount
85% of the Commercial Contract, with the possibility of financing the entire guarantee fee plus interest.
Conditions of the Portuguese State Guarantee
Guarantee:
95% of the eligible amount
Activation of the Guarantee:
90 days
Payment deadline:
30 days
Initial Payment
A minimum upfront payment of 15% of the export contract value, although another percentage may be negotiated on a case-by-case basis, in line with OECD export credit rules at the time.
Contract Currency
Both financing contracts and guarantees issued under the Portugal–Angola Convention are denominated in euros.

Medium and Long-Term operations – over 2 years.
Repayment Term
Must not exceed 10 years,
unless OECD rules allow for longer terms or if the specific nature of the operation justifies it, under Sectoral Agreements, to be negotiated case by case, with compliance to OECD consultation procedures binding on the Portuguese Republic.
Repayment Conditions
Equal, semi-annual, consecutive capital installments.
Utilization Period
According to project delivery/execution time, ideally not exceeding 24 months.
Process Flow
The Republic of Angola, through the Ministry of Finance – Public Debt Management Unit (UGD), submits to the Portuguese Republic, via the Ministry of Finance (DGTF), requests for prior allocation of operations under the Convention.
Once allocated, the process continues with BPF, which coordinates with the exporter and the financing institution to prepare the formal request for coverage under the Convention.
The analysis of operations under the Convention is conducted on a case-by-case basis, and the guaranteed amount may include principal (including the guarantee fee) and interest.
Approval of coverage for operations is the responsibility of the Portuguese Ministry of Finance, based on a proposal from BPF.
Legislation
Operations must comply with the OECD Arrangement on Officially Supported Export Credits, the Sectoral Agreements attached thereto, and other applicable OECD recommendations regarding:
a) amount
b) interest rates
c) value and frequency of repayments
d) recommendations on sustainable development, anti-corruption, and environmental and social concerns.